Gold Lower After Strong US Data

Gold remains under considerable pressure after inflation data sees its biggest rise in four years.

Thursday, the U.S. Labor Department said that the Consumer Price Index for January rose 0.6%, following a 0.3% rise in December. Economists were expecting to see a rise of 0.3%.

“The January increase was the largest seasonally adjusted all items increase since February 2013,” the report said.

The report said that annual inflation is now at 2.5%, up from December’s reading of 2.1%. The report noted that rising gasoline prices accounted for nearly half the increase in inflation. Last month the gasoline index rose 7.8%.

After stripping out volatile food and energy prices, core inflation rose 0.3% last month, following an increase of 0.2% in December; consensus forecasts were calling for a rise of 0.2%.

via Kitco

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